National Bank of Canada
|Traded as||TSX: NA|
|Headquarters||Montreal, Quebec, Canada|
|Louis Vachon (CEO)|
|Revenue||$5,464 million CAD (2014)|
|$1,538 million CAD (2014)|
|Total assets||US$169.2 billion (2015)|
Number of employees
|20,125 (April 30, 2015)|
The National Bank of Canada (French: Banque Nationale du Canada) is the sixth largest commercial bank in Canada. It is headquartered in Montreal, and has branches in most Canadian provinces and 2.4 million personal clients. National Bank is the largest bank in Quebec, and the second largest financial institution in the province, after Desjardins. National Bank's Institution Number is 006 and its SWIFT code is BNDCCAMMINT.
As at October 31, 2014, National Bank had a network of 452 branches and 933 Automated Teller Machines in Canada. It also had a number of representative offices, subsidiaries and partnerships in other countries, through which it serves Canadian and non-Canadian clients.
In 2011, National Bank was placed third in Bloomberg's list of the "The World’s Strongest Banks".
National Bank's business is concentrated in Quebec, and it is expanding on other provinces. For the year ending October 31, 2015, 62% of its total revenues were from Quebec, 32% from other provinces, and 6% from its international and unallocated operations. Its total revenues for the year were allocated across business lines:
- 48% from personal banking,
- 36% from commercial banking,
- 12% from payment solutions, and
- 4% from insurance.
In 1859, francophone businessmen in Ontario and Quebec were keen to establish a bank under their local control, and persuade the provincial legislature to pass the act that created the Banque Nationale on May 4, 1859. Some members of the anglophone bourgeoisie participated in the Bank’s share capital, but francophones retained exclusive control and held all seats on the Board of Directors with Ulric-Joseph Tessier, lawyer and Member of the Legislative Assembly serving as Chairman of the bank.
The bank suffered losses during the banking crisis sparked by the financial panic of 1873 and panic of 1884 but managed to survive and continued to operate. In the 1930s, during the Great Depression, Banque Nationale again came under financial stress; this time a merger was arranged with Banque d’Hochelaga assisted by the province's legislature to strengthen the bank. The merged bank was renamed "Banque Canadienne Nationale", "Canadian National Bank" (BCN) in English.
During the 1970s, Quebec-based rival Provincial Bank of Canada expanded rapidly through a number of acquisitions. It merged with the People’s Bank in 1970, with the Toronto-based Unity Bank of Canada, and in 1979 it acquired Laurentide Financial Corporation of Vancouver. Provincial Bank and BCN continued to expand but continued to have a large part of their operations concentrated in Quebec. In November 1979, these two banks decided to merge under the new name" National Bank of Canada" in what was at the time one of the largest bank mergers.
Through the 1980s the bank continued to grow and expand its businesses through a number of acquisitions, including the brokerage firm Lévesque Beaubien and a year later Geoffrion Leclerc, which became known as Lévesque Beaubien Geoffrion. In 1993, it sold its lease financing operations to GE Capital and acquired the assets of General Trust of Canada.
In 1994, it made a small step outside Canada when it opened two branches in the United States, one in Florida and one in California. In 1995 the bank opened a representative office in Cuba to assist Canadian clients doing business in the country. In 1999 it concluded its purchase of First Marathon, a Toronto-based brokerage firm. First Marathon and the Bank's subsidiary Lévesque Beaubien Geoffrion Inc. merged their operations to form National Bank Financial (NBF), its investment banking subsidiary. In 2002 it acquired US-based investment bank Putnam Lovell and merged the operations with its NBF subsidiary which started operating through offices in New York, Toronto, and London.
The management structure of the bank consists of an Office of the President and a Board of Directors. The membership of the two structures as at 2014 are:
- Louis Vachon, President and Chief Executive Officer
- William Bonnell, Executive Vice-President – Risk Management
- Dominique Fagnoule, Executive Vice-President – Information Technology
- Diane Giard, Executive Vice-President – Personal and Commercial Banking
- Brigitte Hébert, Executive Vice-President - Operations
- Lynn Jeanniot, Executive Vice-President – Human Resources and Corporate Affairs
- Karen Leggett, Executive Vice-President – Marketing and Corporate Strategy
- Luc Paiement, Executive Vice-President – Wealth Management and Co-President and Co-Chief Executive Officer, National Bank Financial
- Ghislain Parent, Chief Financial Officer and Executive Vice-President – Finances and Treasury
- Ricardo Pascoe, Executive Vice-President – Financial Markets
Jean Houde, Chairman of the Board Louis Vachon, President and Chief Executive Officer Raymond Bachand, Director Maryse Bertrand, Director Lawrence S. Bloomberg, Director Pierre Boivin, Director André Caillé, Director Gillian H. Denham, Director Richard Fortin, Director Karen Kinsley, Director Louise Laflamme, Director Julie Payette, Director Roseann Runte, Director Lino A. Saputo, Jr., Director Andrée Savoie, Director Pierre Thabet, Director
Subsidiaries as of October 31, 2014:
- National Bank Life Insurance Company
- National Bank Insurance Firm Inc.
- National Bank Planning and Benefits Inc.
- NBC Alternative Investments Inc.
- CABN Investments Inc.
- National Bank Direct Brokerage Inc
- FBN Funding, LLC
- NBF Securities (USA) Corp.
- National Bank Financial Ltd.
- NBF Financial Services Inc.
- NBF Financial Services Ltd
- Innocap Investment Management Inc.
- NBCN Inc.
- NCEJV, LLC
- Natcan Trust Company
- National Bank Trust Inc.
- National Bank Investments Inc.
- National Founders LP
- NSIA Banque & Assurances S.A. (West & Central Africa)
Credit agency ratings
|This section needs to be updated. (September 2016)|
On October 26, 2012, rating agency Moody’s Investors Service said it is reviewing the long-term ratings of the National Bank of Canada, because of concerns about consumer debt levels, housing prices, and more.
- "Annual Report 2014" (PDF). National Bank of Canada. October 31, 2014.
- "National Bank profile" (PDF). National Bank of Canada. October 31, 2014.
- "In Brief" (PDF). National Bank of Canada. October 31, 2014.
- "National Bank in Brief" (PDF). National Bank of Canada. October 31, 2014.
- Greenwood, John (May 9, 2011). "Canadian banks are world's strongest: Bloomberg, Moody's". Financial Post.
- National Bank of Canada Annual Report 2015 p.23
- National Bank of Canada Annual Report 2015 p.18
- "National Bank History". National Bank of Canada. 2008.
- "Governance - Office of the President". National Bank of Canada. Retrieved 2014-07-18.
- "Governance - Board of Directors". National Bank of Canada. Retrieved 2014-07-18.
- "Our social responsibility 2013" (PDF). National Bank of Canada. October 31, 2013.
- Kiladze, Tim (October 26, 2012). "Moody's reviews six Canadian banks, could downgrade". The Globe and Mail. Retrieved 2013-06-16.
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